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Global Technology's weighted average cost of capital.

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Global Technology's capital structure is as follows:

DEBT - 60%
Preferred Stock - 5
Common Equity - 35

The after tax cost of debt is 6.5 percent; the cost of preferred stock is 10 percent; and the cost of common equity (in the form of retained earnings) is 13.5 percent.
Calculate Global Technology's weighted average cost of capital.

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This provides the steps to compute the Global Technology's weighted average cost of capital.

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Global Technology's weighted average cost of capital= Sum of the Product of weights and cost of ...

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